Mr. Tim Warman reports

FIORE EXPLORATION COMMENCES PROGRAM ON CERRO TOSTADO AND PROVIDES UPDATE ON EL PENON

Exploration has commenced on Fiore Exploration Ltd.'s Cerro Tostado project in Chile, where high-grade epithermal silver veins were previously intersected by three of 18 holes drilled between 2010 and 2012 by Sociedad Quimica Y Minera de Chile SA (SQM). Significant intersections from SQM's drilling at Cerro Tostado included:

• 3.0 metres of 637.0 grams per tonne silver in hole CTAR-01;
• 2.0 m of 830.3 g/t silver in hole TEAR-01;
• 2.0 m of 332.5 g/t silver in hole CTAR-02.

Cerro Tostado is located just south of the main and Florida zones of Yamana Gold's flagship El Penon mine.

Fiore has signed a definitive agreement with SQM to acquire the Cerro Tostado property, on terms previously announced (see press release of Nov. 14, 2016, for details), and has issued subject to exchange approval 10,000 common shares to Fiore Management and Advisory Corp., in conjunction with this acquisition pursuant to its mandate agreement.

Exploration began with a ground magnetic survey completed in early December by Argali Geofisica Chile EIRL, consisting of 324.3 line kilometres of ground magnetic surveying at 50 m line spacing. The survey identified a number of east-northeast-south-southwest and northwest-southeast linear structures, with the intersection of these structures representing the most favourable location for epithermal vein emplacement. In January, 2017, Fiore geologists began a program of relogging and resampling the material from the SQM reverse circulation holes, which had been stored at a secure SQM facility in Chile. A field program of geological, structural and alteration mapping as well as surface sampling is scheduled for first quarter 2017, to build up a more complete picture of the epithermal veins encountered in the previous program. A combined diamond and RC drilling program will follow in early second quarter 2017.

Tim Warman, Fiore's chief executive officer, stated: "We're very excited to begin work on Cerro Tostado, following up on the earlier high-grade silver intercepts drilled by SQM, while we await the final results from Pampas El Penon. The geology of Fiore's land package surrounding Yamana's flagship El Penon mine is very favourable for both high- and low-sulphidation precious metal deposits like those at the El Penon mine complex, particularly at Cerro Tostado where mineralized veins have been encountered over a strike length of approximately 160 m, with the veins open along strike and at depth. At the same time, Fiore continues to advance its strategy of acquiring other undervalued and underexplored assets in Latin America, focusing on areas where the management team can provide a competitive advantage through its experience and local knowledge."

At the company's Pampas El Penon project, the phase I reverse circulation (RC) drilling program was completed in late December, 2016, for a total of 8,227 m in 19 holes. Assay turnaround times have been slower than anticipated, but results have now been received for 16 of 19 holes. Drilling has confirmed the presence of epithermal structures with strongly elevated pathfinder element values (arsenic and antimony) and low but anomalous gold and silver values in seven of 16 holes reported to date (PP-03, -06, -10, -12, -14, -15 and -17). These zones of anomalous gold, silver and pathfinder elements may represent the upper zones of mineralized epithermal vein structures at depth. A December, 2016, site visit report by Nibaldo Rojas, a consulting geologist and former senior exploration director (Andes) for Yamana, has confirmed the similarity between these structures and those currently being mined at Yamana's adjacent Pampa Augusta Victoria mine. Mr. Rojas also noted that the discovery of mineralization at Pampa Augusta Victoria was only made on the third drilling campaign on the property, and the results to date have greatly improved the company's understanding of the local geology and structure. Plans for a follow-up drilling campaign at Pampas El Penon will be made once all of the drilling results have been received and interpreted.

Cerro Tostado

The Cerro Tostado project consists of five concessions totalling approximately 1,500 hectares located in Region II about 125 km southeast of Antofagasta. The project is approximately 12 km southwest and eight km east-southeast of Yamana's El Penon and Fortuna mines, respectively, and along strike from the principal veins reported at the Fortuna mine. A large hill, Cerro Largato, forms a north-south-elongated outcrop of argillic altered and brecciated rhyolite that intrudes and is in fault contact with porphyritic andesitic units, and dacitic to rhyodacitic units toward the east and southeast. These outcropping units are surrounded by gravel and caliche covered areas. Alteration is most intense along the breccia bodies that are spatially related with the dominant north-south and northwest-southeast structural trends. Associated with the argillic alteration and structural trends are variable intensities of hematite-jarosite bearing veinlets.

Details of previous exploration at Cerro Tostado

Exploration work was carried out by SQM between 2010 and 2012, and consisted of mapping and surface sampling, 3.8 km of trenching and channel sampling, and 17 reverse circulation holes for a total of 2,611 m. The results have confirmed the presence of structurally controlled silver-dominated mineralization.

Drilling was conducted by SQM in three campaigns between 2010 and 2012. The holes ranged in depth from 54 to 350 m, with nine of 17 holes being less than 100 m in length. Three of the 17 holes intercepted high-grade silver values as displayed in the table.

        SELECTED CERRO TOSTADO DRILL INTERSECTIONS
     
Hole ID   From (m)   To (m)   Width (m)   Silver grade (g/t)

TEAR-07    28.0       30.0       2.0             830.3             
CTAR-01    97.0      100.0       3.0             637.0             
          104.0      105.0       1.0             294.0             
CTAR-02   185.0      187.0       2.0             332.5             
 
Notes

Insufficient drilling has been completed to calculate true 
widths.
  
Intercepts are generally calculated using samples greater 
than or equal to 150 g/t silver, and contain no more than 
1.0 m of internal dilution.
  

Five other holes intercepted zones of subeconomic but anomalous silver, as well as elevated antimony, arsenic and lead. The veins intercepted by the SQM drilling remain open along strike and at depth.

Appointment of chief financial officer

Fiore is pleased to announce the appointment of Jessica Van Den Akker as chief financial officer of the company effective Jan. 4, 2017. Ms. Van Den Akker is a chartered professional accountant (CA) with over 11 years of experience in the resource sector. She gained extensive experience through a Canadian audit firm providing reporting and accounting assurance services to publicly traded companies, primarily in natural resources. Ms. Van Den Akker is a graduate of Simon Fraser University where she received a bachelor of business administration. The board has accepted the resignation of Ms. Dhaliwal, and would like to thank her for her contributions to the company and wish her well in her future endeavours.

The company further announces that pursuant to the company's stock option plan, a total of 1.35 million incentive stock options have been granted to directors, officers, consultants and employees of the company. The options are exercisable at the closing price of the company's shares on Jan. 19, 2017, for a period of 10 years, subject to regulatory approval.

Technical information and qualified person

Drilling at Cerro Tostado by SQM was carried out using a reverse circulation rig. Samples were collected every 1.0 m from intervals of interest. Samples were assayed for gold and silver, and in some cases for antimony and arsenic, by Andes Analytical Assay Ltda. of Santiago, using the atomic absorption (AA) method. Quality assurance/quality control procedures were confined to the insertion of a blank sample for every 20 samples. Standard reference materials do not appear to have been used. Fiore is confident that SQM's sample preparation, security, analytical procedures and analyses were adequate for an early-stage exploration property. Future exploration drilling programs will utilize Fiore's standard procedures as described below.

Drilling at Pampas El Penon by Fiore Exploration was carried out by AK Drilling International Perforaciones Ltda. using a truck-mounted reverse circulation rig. Samples were collected every 1.0 m from intervals of interest. A three-kilogram subsample was prepared using a riffle splitter and the samples were transported by Fiore personnel in sacks with numbered seals to ALS Chemex Laboratories in Antofagasta, Chile, for preparation. Sample pulps were then sent to the ALS Chemex Peru (Lima) laboratory for analysis. Gold was assayed using a 50-gram gold fire assay with either an atomic absorption or a gravimetric finish for samples initially reporting over 10.0 g/t gold. Multielement ICP (33 elements, four-acid digest) geochemical analyses were also carried out on each sample. Standard reference materials and blanks were inserted in each assay shipment as part of Fiore's quality assurance/quality control program.

ALS Minerals Chile is certified under the integrated ISO quality system; quality ISO 9001:2008, environmental ISO 14001:2004 and safety OHSAS 18001:2007. The ALS regional analytical laboratory in Lima is certified with ISO 9001:2008 and ISO 17025, accredited by the Standards Council of Canada.

Vern Arseneau, PGeo, Fiore's vice-president of exploration, is the qualified person who supervised the preparation of the technical data in this news release.

About Fiore Exploration

Fiore Exploration is a Latin America-focused gold explorer; its Pampas El Penon and Cerro Tostado gold and silver projects in Chile cover land in the same geological environment as Yamana's flagship El Penon mine.

We seek Safe Harbor.